While tariffs dominate headlines, Europe’s counterpunch is taking digital form. Germany has proposed a 10% “Platform Solidarity Contribution” targeting U.S. tech giants like Google and Amazon. Officially framed as media fairness, Berlin insiders admit it’s a geopolitical counterstrike—digital tariffs in disguise. Modeled after Austria’s version, the tax could backfire by raising costs on EU startups reliant on U.S. platforms, but the signal is unmistakable: if Washington taxes analog goods, Europe will tax digital power.
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This marks a deeper shift from negotiation to structured reprisal. Lacking dominant tech champions, the EU is leveraging taxation to reclaim digital sovereignty—even at the risk of exposing its innovation gap.
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At the Shangri-La Dialogue, economic volatility—not military posture—dominated conversations. Malaysia and Australia warned that unpredictable U.S. tariffs are undermining regional trust and supply chain resilience. In response, a middle-power coalition—from Europe to Southeast Asia—is pushing for strategic autonomy and diversified trade ties to buffer against superpower volatility.

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